XWDiscos, KE seek Nepra’s nod for massive hike in power tariffs under monthly FCA

ISLAMABAD – The electricity consumers are likely to be burdened with an additional Rs 182 billion in August as Ex-Wapda Distribution Companies (XWDiscos) and K-Electric (KE) have sought National Electric Power Regulatory Authority’s nod for a hike of Rs 9.9095/unit and Rs 11.389/unit respectively in tariffs on account of monthly fuel charges adjustment (FCA).
The electricity consumers will soon have another electric shock, as in two separate petitions both XWDiscos and KE have sought a massive hike in electricity tariffs for their consumers on account of June FCA.
If approved, the decision will empower XWDiscos and KE to transfer an additional burden of approximately Rs 182b (FCA+17pc GST) to the power consumers across Pakistan in August. In a petition submitted to NEPRA, on the behalf of power distribution companies (XWDISOCs), the CPPA-G said that for the month of June the reference fuel charges from the consumers were Rs 5.9344/unit while the actual fuel cost was Rs 15.8439/unit. Therefore it should be allowed to pass the increase of Rs 9.9095/unit to the consumers.
In the data shared with the regulator, the CPPA-G informed that 13876.14 GWh electricity was generated during June at the cost of Rs 204.237b (or Rs 14.7186/unit) and 13471.05 GWh had been delivered to Discos at Rs 213.434b (or Rs 15.8439/unit). The losses during June were 2.92pc.
It was informed that the hydle generation was decreased to 3361.21 GWh (24.22pc) during June from 3590.92 GWh (24.5pc) during May. The data further said that 1454.04 GWh (10.48pc) expensive electricity was generated from furnace oil during June which was higher from the 1290.33GWh (8.80pc) RFO based generation of May. The RFO based electricity in June cost Rs 36.2024/unit which was higher than May cost of Rs33.67/unit. No electricity was generated from high speed diesel during the month. The natural gas based generation contributed 1479.32 GWh (10.66pc) electricity to the national grid in June at Rs 8.9264/unit.
The cost of re-gasified liquefied natural gas (RLNG) based electricity was also increased to Rs 28.3833/unit in June from Rs27.92/unit during previous month. The RLNG based electricity contributed 3390.54 GWh (24.43pc) of to the national grid. The generation from coal based power plant decreased to 1883.13 GWh (13.57pc) in June from 2018.19GWh (13.77pc) in May. Coal was comparatively cheaper source for power generation viz-a-viz RFO and RLNG, and it cost Rs 20.8077/unit. In May the per unit cost of coal based power was Rs18.01/unit.
Generation from nuclear power plants also decreased to 1265.67 GWh (9.12pc) in June from 1890.38GWh (12.90pc) in May. The per unit cost of nuclear power was Rs1.1244/unit. In June Pakistan had imported 51.49GWh electricity from Iran at the cost of Rs19.57/unit. From baggasse, 83.01 GWh electricity was generated at Rs5.9822/unit. Wind, solar and mixed sources contributed 811.59GWh, 86.82 GWh and 9.87GWh respectively to the national grid during June.
It is worth mentioning here that for the month of May also NEPRA increased power tariff by Rs 7.90/ unit for Ex-Wapda Distribution Companies (XWDiscos) on account of monthly fuel charges adjustment (FCA).
Meanwhile, KE has also sought an increase of Rs 11.389/unit in power tariff on account of monthly FCA for June. The determination in this regard will have an impact of approximately Rs 26b (Rs22.254bn +GST) on Karachiites. NEPRA will hold public hearing on both the petitions on July 28, 2022.

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